BRC Diamond and Diamond Core update merger progress

    JOHANNESBURG, South Africa and TORONTO, Canada, Sept. 7 /CNW/ - BRC
Diamond Corporation ("BRC") (TSX-V: BRC) and Diamond Core Resources Limited
("Diamond Core") (JSE: DMR) announce that the efforts to merge the two
companies (the "Merger") are progressing well. BRC has today announced in
South Africa its firm intention to make an offer ("Offer") under the terms
previously agreed and set out below.
    Dr. Michiel 'Mike' de Wit, President and CEO of BRC, said, "Our internal
teams and advisors have been working diligently towards the documentation
required for the transaction in the jurisdictions of each company. This
documentation is now being consolidated for review by the various regulatory
authorities and we expect to be in a position to mail our offer and proceed
with a shareholder vote along our original timelines for completion."
    Theo Botoulas, CEO of Diamond Core, added, "While the documentation
efforts have progressed, our technical teams have also been busy both
individually, as each company's projects continue to advance appreciably, and
on a joint basis with a view to creating value immediately upon completion of
the Merger. To that end, we are actively working with BRC on design and
implementation plans for their first bulk sampling plant for the Kwango River
project in the DRC."
    As detailed in the joint news release of July 5, 2007, the Merger is to
be implemented by way of a court-sanctioned scheme of arrangement (the
"Scheme") under the provisions of Section 311 of the Companies Act, 1973
(South Africa). At closing, all Diamond Core shareholders will receive 1 BRC
common share for every 24.5 Diamond Core ordinary shares held. BRC
shareholders will continue to hold their existing BRC common shares. The
combined company will be renamed BRC DiamondCore Ltd. In connection with the
Merger, BRC has applied to list its common shares on the Toronto Stock
Exchange and the JSE Limited in Johannesburg (such listings are subject to
meeting the minimum listing requirements of the exchanges).
    BRC and Diamond Core have received support in favour of the Merger, by
way of irrevocable letter agreements, from shareholders which represent a
total of approximately 52% of Diamond Core's issued ordinary shares.
    The Merger is subject to typical conditions, including the approval of
the Exchange Control Department of the South African Reserve Bank and Diamond
Core shareholders at a meeting expected to be held in the fourth calendar
quarter. The board of directors of Diamond Core has agreed to recommend the
transaction to its shareholders, subject to its fiduciary obligations and the
receipt of a favourable fair and reasonable opinion for which Venmyn Rand
(Pty) Ltd. has been appointed. BRC's board of directors has approved the
transaction. Other transaction approvals include competition, South African
exchange control and stock exchange authorities.
    BRC and Diamond Core have entered into a pre-merger agreement (the
"Agreement") which provides, inter alia, for the implementation of the Merger
and the Scheme, a non-solicit arrangement and payment of a break-fee and
certain assurances and confirmations between the parties. Under the Agreement
BRC is entitled to terminate the Agreement (and consequently withdraw its
Offer) if at any time prior to the posting of the Scheme circular (a) there
shall have occurred any event or change that has had, or would be reasonably
likely to have, a material adverse effect on Diamond Core, or (b) BRC's due
diligence investigation reveals material adverse information respecting
Diamond Core that has not been generally disclosed in Diamond Core's public
disclosure documents.


    BRC's financial advisor is RBC Capital Markets. Diamond Core's financial
advisor is River Group.

    About BRC

    BRC is a Canadian-based diamond exploration company active principally in
the Democratic Republic of the Congo (the "DRC"). Led by a management team
with extensive experience in the DRC, BRC was one of the first companies to
identify emerging diamond opportunities in the DRC and today has a commanding
land position, directly controlling approximately 8,458 square kilometers and
retaining a further 10,922 square kilometers through option agreements on
three separate exploration properties. These properties are located in some of
the most prospective diamond regions of the country. Banro Corporation, BRC's
largest shareholder with a 27.5% interest in BRC, is a mineral exploration
company focused on the DRC. BRC is listed on the TSX Venture Exchange under
the ticker "BRC".

    About Diamond Core

    The objectives of the South African-based Diamond Core group of companies
are to conduct systematic greenfields diamond exploration programs and to
bring to account economically viable diamond discoveries through the
acquisition of assets considered uneconomic or marginal by others. Diamond
Core believes these assets can successfully be brought to account using its
technical skills, entrepreneurial spirit and low cost operating structure.
Diamond Core is focused on, and currently active in, the Northern Cape
Province of South Africa. Diamond Core is actively involved in two kimberlite
exploration projects, the Paardeberg East Project, situated 40 km west of
Kimberley, and the Skeyfontein JV, located some 20 km south east of the town
of Postmasburg. Through its acquisition of Samadi (SA) Pty Ltd., Diamond Core
has a suite of three alluvial projects: Silverstreams, Uitdraai and the De
Kalk Project. Diamond Core also has a suite of five applications with the
Department of Minerals and Energy Affairs for additional prospecting rights in
the Northern Cape Province. Diamond Core is listed on the JSE Securities
Exchange in South Africa under the ticker "DMR".

    Forward-Looking Statements
    This news release contains forward-looking statements. All statements,
other than statements of historical fact, that address activities, events or
developments that BRC and Diamond Core believe, expect or anticipate will or
may occur in the future (including, without limitation, statements regarding
potential mineralization and future plans and objectives of BRC and Diamond
Core) are forward-looking statements. These forward-looking statements reflect
the current expectations or beliefs of BRC and Diamond Core based on
information currently available to them. Forward-looking statements are
subject to a number of risks and uncertainties that may cause the actual
results of BRC and Diamond Core to differ materially from those discussed in
the forward-looking statements, and even if such actual results are realized
or substantially realized, there can be no assurance that they will have the
expected consequences to, or effects on such companies. Factors that could
cause actual results or events to differ materially from current expectations
include, among other things, failure to complete the Merger as a result of one
or more of the closing conditions not being fulfilled (including failure to
obtain all required approvals), the possibility that future exploration
results will not be consistent with the expectations of BRC and Diamond Core,
changes in equity markets, changes in diamond markets, foreign currency
fluctuations, political developments in the DRC or South Africa, changes to
regulations affecting BRC's or Diamond Core's activities, uncertainties
relating to the availability and costs of financing needed in the future,
delays in obtaining or failure to obtain required project approvals, the
uncertainties involved in interpreting exploration results and other
geological data and the other risks involved in the diamond exploration and
development industry. Any forward-looking statement speaks only as of the date
on which it is made and, except as may be required by applicable securities
laws, BRC disclaims any intent or obligation to update any forward-looking
statement, whether as a result of new information, future events or results or
otherwise. Although BRC and Diamond Core believe that the assumptions inherent
in the forward-looking statements are reasonable, forward-looking statements
are not guarantees of future performance and accordingly undue reliance should
not be put on such statements due to the inherent uncertainty therein.

    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this news release.

For further information:

For further information: In Johannesburg: James Duncan, Russell &
Associates, 27 11 880-3924; In Toronto: Arnold T. Kondrat, Executive Vice
President, or Martin D. Jones, Vice President, Corporate Development, BRC
Diamond Corporation, at (416) 366-2221 or 1-800-714-7938

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BRC DiamondCore Ltd.

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